The regulators fiddled while we got burnt
January 8, 2009
http://www.businessday.com.au/busine...0107-7bz6.htmlForget the 1980s. That was just a warm-up for the main act. These are the dying days of the real decade of greed. And there is no greater example than in the recent trading in shares.
The past couple of days has seen some wild gyrations in the share price of a company that clearly has no future. Even John Cleese at his Monty Pythonesque best would have difficulty arguing that it was just resting or "pining for the fiords".
This is a dead company, gone to meet its maker. So who in their right mind would bother buying shares in a company that was a dead cert to collapse? And particularly on the very day the corporation announced it had "negative net assets"?
The answer? A hedge fund that finally was calling in a short selling position. A what position, I hear you ask.